Chicago Grain Futures Mixed As Outside Markets Rally

Grain futures in Chicago Board of Trade were mixed on Tuesday as the equities market and crude oil soared.

Corn future for May delivery dropped 1 cent to 3.905 U.S. dollars a bushel. May soybean climbed 2 cents to 9.13 dollars per bushel and May wheat was up 8.25 cents, settled on 5.525 dollars per bushel.

Outside markets continued to have an important effect on the trends of grain futures. Buoyed by the unexpectedly bullish housing starts data released by Commerce Department, stock market went up sharply as the Dow industrials gained 179 points for the session. Crude oil rallied to near 50 dollars per barrel and made a new eight-week high.

The outside markets' strong performance eased investors' concerns on economic crisis, and the traders expected that the demand for U.S. grains would increase, said analysts.

Continued conflicts in Argentina between farming groups and the government gave some market sentiment that U.S. soybeans and soy products exports will potentially increase as a result.

Weather forecasts called for little to no signs of significant rainfall in hard red wheat crop areas of the southern Plains. This weather situation has continued to be a wheat production concern in the market, thus giving some additional supports to wheat.